Hole In The Wall




But Furman and Mark Zandi, chief economist of Moody's Economy.com, point to a study published last year that found in 2001, when households received rebates between $300 and $600, consumers spent two-thirds of those rebates within six months of receiving them. The study estimates the rebates gave a healthy boost to consumer spending at the time.

But, Zandi noted in an e-mail, "The effectiveness of a tax rebate on consumer spending would be enhanced if targeted to lower and middle income households that are more financially constrained and thus more likely to quickly spend the rebate check."